News

Water 2030: Initial findings put state’s water needs at $15 billion
The Rural Center released initial findings of a yearlong water resource study on Dec. 15 that revealed infrastructure needs of $7 billion in just five years and $15 billion by 2030. The assessment of the state’s public water, sewer and storm water infrastructure was conducted as part of the center’s Water 2030 Initiative, launched in 2004 to give state leaders the information necessary to plan for short- and long-term growth and address environmental issues facing North Carolina. Rural Center President Billy Ray Hall called news of the capital needs a ‘staggering wake-up call.’ Hundreds of rural communities across the state with substantial needs do not have the tax base to pay for expensive water and wastewater projects, Hall said, and with funding from the 1998 Clean Water Bond Act nearly expended, these communities will have few funding options available to them. The project moves forward with detailed county-level infrastructure data to be released this spring, a public education and outreach effort to be launched mid-year, and a statewide water resources conference to be held this summer. The project will culminate in the release of a final report due out in late 2005. For more information on Water 2030, contact project director Jean Crews-Klein at (919) 250-4314, or email to jklein@ncruralcenter.org.

N.C. Department of Commerce releases tier rankings, 23 counties see change in economic distress rating
Twenty-three counties recently received word from the state Department of Commerce of a change in their tier designation, the ranking system used by state lawmakers and policy leaders to gauge a county’s level of economic distress. Alamance, Beaufort, Cabarrus, Caldwell, Catawba, Granville, Guilford, Hertford, Hyde, Martin, McDowell, Rowan and Vance counties moved down one tier level to a more-distressed designation, while Bladen, Brunswick, Carteret, Cherokee, Greene, Harnett, Pender, Onslow, Swain and Wilkes all moved up one tier level to a less-distressed ranking. All other counties remained at 2004 tier levels. The five economic distress tier levels – with 1 representing the most distressed counties and 5 the least – are determined through a statutory formula and determine the type and amount of tax credits available to that county. A company locating in a Tier I county, for example, could receive a $12,500 tax credit for every new job created, compared to $500 for each job created in a Tier 5 county. To see the 2005 Tier Designation List and a detailed county map, visit the N.C Department of Commerce's website.

Bush signs bill boosting U.S. Small Business Administration funding, approves bigger loans for manufacturers
President George W. Bush signed legislation making more than $21 billion available to small businesses through the U.S. Small Business Administration’s two primary loan programs. The SBA’s loan guarantee program was boosted to a record level of $16 billion level – a $3.5 billion increase over last fiscal year. The legislation also makes the popular SBAExpress program permanent, raising the maximum loan size available to borrowers to $350,000. Congress included language expanding the SBA’s 504 loan program, which is used for the purchase of real estate, buildings and machinery, and with it raised the maximum loan size for manufacturers to $4 million. To find out more, visit the SBA’s website at www.sba.gov.

North Carolina’s textile and apparel industry bracing for impact after quotas on foreign-made goods expire Jan. 1
North Carolina’s textile industry is bracing for a flood of cheap textiles and apparel from China now that a long-awaited Jan. 1 lifting of a textile quota system has passed. American textile and apparel manufacturers fear a 30-40 percent difference in price between American-made goods and comparable Chinese products amid fears of widespread job losses. The U.S. government has put pressure on China to voluntarily limit exports, and in a sign that the tactic could be working, Beijing announced last month that it would impose a tax on some apparel exports, though details of that plan have yet to be finalized. Meanwhile, the Bush administration’s Committee for the Implementation of Textile Agreements (CITA) is advocating for a plan that calls for "staged entry" of certain textiles and apparel imports next year.

Reports and Research

UNC School of Government examines North Carolina’s faith-based social services and asks: What are they? Are they working? What does the future hold?
Shortly after taking office in 2001, President Bush implemented his faith-based social services initiative. These organizations ‘inspire hope in a way the government never can,’ the president said at the time, and he backed up that contention with billions in federal funding. Today, faith-based social services, including job training, child care services, housing, literacy and health programs, are increasing in scope both in North Carolina and in many parts of the nation. But are they working? A new UNC-Chapel Hill School of Government report tackles that question, along with many others, in the latest issue of Popular Government.

Rural Center-led report details best practices for aiding dislocated workers
Under the guidance of the Rural Center, CFED recently developed a report highlighting best practices to assist dislocated workers. The report delves into the economic transitions that bring about downturns in mature industries, offers strategies for minimizing the short and long-term financial crisis experienced by dislocated workers, as well as recommendations to boost workers’ appreciation of and access to education and training programs. The report also looks at innovative policies that could prevent large-scale worker dislocation in the future. To read the full report, click here.

With new website, federal government wants Americans to manage money better
The federal government recently unveiled a new website, www.mymoney.gov, dedicated to helping consumers and small business owners manage their money better. Topics include budgeting, investing, saving and financial planning as well as micro and small business development assistance.

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Meetings and Events

Entrepreneurial incubator grants available, application workshops to be held in Raleigh and Hickory Jan. 28th
Local government officials and partners are invited to attend an informational workshop Jan. 28th to learn details of a new grants program aimed at stimulating job growth in rural communities through new and expanded entrepreneurial incubators. The grants program, sponsored by the Rural Center in partnership with the N.C. Department of Commerce through its Small Cities Community Development Block Grant Program, will help new and existing incubators fund ‘brick and mortar’ construction costs with grants of up to $400,000. Grant recipients will be announced in July. The informational workshops will be held simultaneously at 10:30 a.m. in Raleigh at the Rural Center, 4021 Carya Drive, and in Hickory at the Hickory Metro Higher Education Center, 2761 Hwy. 70 SE. To read the grant guidelines, click here. Reservations are required for this workshop. For more information and to reserve space, contact Leslie Scott, director for the Institute for Rural Entrepreneurship at (919) 250-4314 or lscott@ncruralcenter.org.

Health care the focus of 2005 Emerging Issues Forum held Feb. 7-8 in Raleigh
The 2005 Emerging Issues Forum will be held Feb. 7-8 in Raleigh at N.C. State University’s McKimmon Center. The theme for the 20th annual event is “My Health is Your Business: Making Healthcare Work in North Carolina.” This year’s conference will initiate a substantive discussion on health care from all sides – large and small business owners, health care providers, insurers, governments, communities and individuals. States and communities are poised to drive innovation in health care, and North Carolina has the assets and the opportunities necessary to identify and implement change, according to event sponsor the Institute for Emerging Issues. Speakers include former U.S. House Speaker Newt Gingrich, U.S. Rep. Mel Watt, U.S. Sen. Richard Burr and Secretary of Health and Human Services Tommy Thompson. Former North Carolina Governor Jim Hunt, who chairs the institute, will preside over the event. The cost is $175 for both days, which includes lunch. To download an agenda, or to register, view the website .

Virginia conference to tout new technologies as catalyst for economic, social change in rural communities
The Institute for Advanced Learning and Research will hold its 2005 conference, “Impacting Rural Communities Through New Age Technologies,” April 18-19 in Danville, Va. This year’s conference will focus on new technologies and their potential to bring prosperity and social change to rural areas. Keynote addresses by experts in the field will focus on technology and the economy, job creation and building high technology businesses in rural communities. Breakout sessions will focus on specific technology advances, challenges and concerns that rural communities must explore in order to succeed, as well as best practices in advancing the adoption of new technologies in rural communities for public and private sector growth. The conference is $150 for both days, including meals. Visist the website to find out more, or to register online.

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At the Rural Center

Project New Start to continue work on behalf of dislocated workers with federal funding
The U.S. Department of Labor has awarded the Rural Center’s Project New Start $400,000 for a second phase of the jobs assistance program for dislocated workers. The program uses a community-based approach to help workers that have been hard hit by layoffs map out an employment transition plan, search for a new job and receive basic education and job training skills. During its first year, the program served more than 370 dislocated tobacco workers in Vance, Wilson, Transylvania and Buncombe counties, helping secure new jobs for 166 workers. In its second phase, the program will expand service to dislocated manufacturing workers with an emphasis on textile, apparel, furniture and other workers affected by the state’s ongoing economic restructuring. New sites will be announced at a later date. To find out more about Project New Start, contact project director Anne Scharff Bacon at (919) 250-4314, abacon@ncruralcenter.org.

Rural Center’s board of directors approves $1,016,000 for CDC Grants Program
The Rural Center’s board of directors has approved $1,016,000 in grant funding for 29 Community Development Corporations (CDCs) across North Carolina. The grants will help CDCs further their work on behalf of low-income people and communities through business, housing and job development initiatives. The center’s CDC Grants Program provides financial support and financial assistance to minority community development corporations after review and recommendation of the center’s Minority Economic Development Advisory Committee. To find out more about the CDC Grants Program, visit the website.

Center’s leadership institute gears up for class of 2005
The center’s Rural Economic Development Institute will accept applications for its 2005 leadership program through February 25. The institute is a valuable resource for helping rural leaders grow their leadership skills in order to meet the economic development challenges in their communities. There are 30 available slots for the next institute, which consists of nine days of classes over a three-month period. Tuition is $495, with a limited number of scholarships available. The meeting dates for the 2005 institute are March 16-18, April 13-15 and May 4-6. For more information or to apply, contact Carol Torian at the Rural Center, (919) 250-4314, ctorian@ncruralcenter.org.

Center’s Capital Access Program welcomes new member banks
The Rural Center recently welcomed several new financial institutions as participating members of its Capital Access Program (CAP), a business loan program that encourages lenders to make loans to small businesses that do not meet conventional banking guidelines. The program, which provides a reserve fund that protects the bank against losses, recently intensified efforts to increase the number of loans made in rural counties. As a result of that effort, nine financial institutions are now active in CAP: BB&T, First Citizens, First Bank of Troy, Macon Bank, Randolph Bank, First National Bank of Shelby, East Carolina Bank, Neuse River Development Authority, and First Community Bank. Since its inception in 1994, more than 930 small businesses have received nearly $50 million in business financing as a result of the Capital Access Program. To find out more about CAP, contact program director Jim Evans at (919) 250-4314, jevans@ncruralcenter.org.

Funding Sources

Rural communities may apply for USDA community development grants through Jan. 25
Grants of $50,000 to $500,000 are available to rural communities through the U.S. Department of Agriculture’s Community Development Initiative. Projects that increase community capacity to undertake housing, community facilities, or community and economic development will be eligible. The grants, which must be fully matched by the grantee, will enable intermediary organizations to provide the financial and technical assistance necessary to build community capacity. Applications are due by 5 p.m. on January 25. To apply, click here.

From the N.C. Press

Gaston Gazette: Immigration issue raised in N.C. Senate, gubernatorial races
After making promises on taxes and jobs and trading accusations about funding for breast cancer treatment, North Carolina politicians this year tackled an increasingly hot-button issue – illegal immigration and the state’s growing Hispanic population. In the contests for U.S. Senate and governor, Republicans took on illegal immigration in North Carolina, which had the nation’s second fastest-growing Hispanic population in the 1990s and reached about 450,000 in 2002. Republicans working to elect Senate candidate Richard Burr and gubernatorial candidate Patrick Ballantine said on television and radio that their Democratic rivals weren’t just lax on curbing illegal immigration; they even encouraged it. El Pueblo, a Latino advocacy group in Raleigh, reacted with a get-out-the-vote campaign, trying to get the 23,000 registered voters who identify themselves as Latino to the polls. El Pueblo and other Latino advocacy groups accuse Republicans raising the issue of illegal immigration as code aimed at harnessing hostility against Hispanic immigrants to win support from other voters.

Roanoke Beacon: Key to local community college rests with commissioners
The county’s ad hoc economic development team was given an assignment last month to do some homework on the feasibility of establishing a stronger, more concentrated community college presence in Washington County. While not an economic development target in and of itself, the team realizes that the need for higher education and a trained work force is a common ingredient needed to accomplish each of its five economic development cornerstones – light industry, technology, tourism, retirement and agri-business. In establishing a center for post-high school education, combining the course offerings of two or more colleges is often the better course to take in serving rural or isolated communities, according to Clay Carter, director of off-campus activities for Beaufort County Community College. Carter offered information to the team on what it takes to establish a community college. “If Washington County wants a community college,” Carter said, “Washington County needs to lead the charge.” A facility, which could be a refurbished grocery store, or an empty factory in the county, would be bought and owned by the county and either given or leased back to the college, but maintained by the county, he said.

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The mission of the North Carolina Rural Economic Development Center is to develop, promote, and implement sound economic strategies that improve the quality of life of rural North Carolinians, with a special focus on individuals with low to moderate incomes and communities with limited resources.

N.C. Rural Economic Development Center
Michelle Taylor, UPDATE editor
Kelly Tucker Griffin, UPDATE production manager
Elaine Matthews, vice president for communications and development
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
www.ncruralcenter.org